staggering amount of remittances outflow of the GCC economies plays a stabilizing role as a tacit monetary policy tool …. Incorporating remittances in the money demand equation results in a more robust model than otherwise. We further find that the …

economies. The literature is in- conclusive about the cyclical nature of remittance inflows. To the extent remittances are … remittances increase strongly. The same is true for a policy easing under exceptionally weak remittance inflows. This paper … remittances. These results have important implications for the design of inflation targeting in developing countries. …

a stable flow of interest-insensitive funding, remittances tend to increase banks' holdings of liquid assets. This both …